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CustomVis

  • BY: Andrew Hore |
  • POSTED: 19/03/2009 |

Laser eye surgery equipment manufacturer CustomVis has reduced its manufacturing costs and is determined to move into profit without having to raise additional cash.

Revenues grew 76% to £905,000 in the six months to December 2008, and the loss was reduced from £568,000 to £223,000. However, most of that improvement was down to an increased foreign exchange gain. Most revenues are in US$ and costs in A$ and this is further complicated by reporting in pounds. It hits revenues but reduces the reported loss. (Of course, if CustomVis were profitable it would reduce the reported profits.)

Changes in revenue recognition mean that revenue is not recognised until the equipment is installed.

Shares in CustomVis jumped 0.25p to 0.875p each, which values the company at £1.49m.

Manufacturing costs were cut by 20% last year and a further 10% has been shaved off costs since then. 

CustomVis has already installed two machines since December and the company reports a strong sales pipeline. The company has turned down orders if they are not going to generate short-term cash.

Existing users are looking to upgrade to the latest equipment and CustomVis can take back their existing lasers, refurbish them and sell them on.

The low-cost retinal camera is under evaluation and this information should be collected over the next couple of months. The trial of equipment for Presbyopia (related to needing reading glasses) is ongoing, as is development of a multipurpose laser, which has been awarded a government grant of A$2.3m.

CustomVis is looking outside of its own technology in order to generate additional revenues. They include contract manufacture of another healthcare device, using its distribution network to sell another company’s green laser for ophthalmic use and taking Australian rights on an ophthalmic analytical instrument. CustomVis will take another two months to assess these opportunities. 

CustomVis has £626,000 in the bank. That is less than the cash outflow in the first half but cost reductions should help to reduce the cash outflow and, hopefully, working capital can be reduced.

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